STX Shipbuilding Likely to Enter Court-lead Restructuring

May 25, 2016

Photo: Robert Kunkel
Photo: Robert Kunkel
Photo: Robert Kunkel
Photo: Robert Kunkel
Photo: Robert Kunkel
Photo: Robert Kunkel

South Korean shipbuilder STX Offshore & Shipbuilding Co Ltd will likely need to enter court-supervised receivership due to financial difficulties, the firm's lead creditor Korea Development Bank said on Wednesday.

STX Offshore's creditors took control of the company in 2013 after the shipbuilder was hit by falling ship prices following the global financial crisis.

A Korea Development Bank spokesman said the firm's creditors will decide on how to proceed with the court receivership process by the end of the month, as the company lacks sufficient funds to meet its financial obligations at end-May.

South Korean shipbuilders and container shippers such as Daewoo Shipbuilding & Marine Engineering and Hanjin Shipping Co Ltd are facing severe financial troubles as sluggish global economic growth and weak oil prices drove them into deep losses.


(Reporting by Changho Lee; writing by Se Young Lee; Editing by Subhranshu Sahu)

Logistics News

Turkey Bars Israeli Ships From Its Ports

Turkey Bars Israeli Ships From Its Ports

Eighth Island Class Vessel Joins BC Ferries

Eighth Island Class Vessel Joins BC Ferries

Vattenfall Secures Dutch Base to Support Germany’s Largest Offshore Wind Farm

Vattenfall Secures Dutch Base to Support Germany’s Largest Offshore Wind Farm

Tanker Vessel Market Bends Under Supply and Demand Strains

Tanker Vessel Market Bends Under Supply and Demand Strains

Subscribe for Maritime Logistics Professional E‑News

Israel targets Houthi Chief of Staff and Defence Minister in Sanaa; awaits outcome
Global Postal Services suspends some U.S. shipments after de minimis exemption expires
New $250 visa fee risks deepening US travel slump